Digital Gold Boom Unregulated: SEBI Warns, IBJA Steps In for Investor Safety

• Digital gold's popularity surged in India, with 12 tons purchased this year, valued at ₹16,670 crore.
• SEBI warned that digital gold is unregulated and not a security under its purview, unlike Gold ETFs.
• Its appeal lies in ease of investment (from ₹1), no storage/purity concerns, attracting millennials and Gen Z.
• India Bullion and Jewelers Association (IBJA) is forming a Self-Regulatory Organization (SRO) to regulate digital gold companies.
• SRO aims to ensure physical gold backing, secure storage, regular audits, and minimum net worth for companies.

Why It Matters: Digital gold's popularity faces regulation concerns; IBJA to self-regulate for investor protection.